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Throughput contribution is defined as sales revenue minus:

A) Direct materials costs. B) Direct materials costs minus operating costs. C) Direct materials, direct labor, and variable manufacturing costs. D) Operating expenses.

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Question added by Deleted user
Date Posted: 2015/02/07
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option (A)  >>>>>>>>>>>>   Direct materials costs

mohamed rabee
by mohamed rabee , Regional Business Development Manager , GULFMED fze

Throughput contribution = revenue -direct material cost us used to know in decision making if to continuing produce this product or not Contuning produce this this product example if revenue100 dollar and direct material cost105 this mean this product did not even share in overhead cost no this product make lose5 dollar for each unite

Mohammed Shahid Ullah
by Mohammed Shahid Ullah , Executive Director (Finance) , Coal Power Generation Company Bangladesh Limited

Direct materials, direct labor, and variable manufacturing costs.

MUJTABA GHARADE
by MUJTABA GHARADE , Accountant , ANAM AND ASSOCIATES (Chartered Accountants)

Contribution = Sales Minus Variable Cost

Mahmoud El-Naggar
by Mahmoud El-Naggar , Senior Auditor , Hassan El-Serafi & Shafiq Ahmed Chartered Accountants

A) is the right answer as throughput contribution = revenue - direct material

Yusuf Chotejan Baig
by Yusuf Chotejan Baig , F&A Manager

 

Throughput = Sales Revenue minus Total Variable Cost

Abul kalam
by Abul kalam , Chief Accountant , Pastels for Fashion & Beauty(Wycon), Mediaf Restaurant Management(SAID DAL)-AL SRAIYA HOLDING GROUP

Answer: Sales Revenue- Variable Cost

Mobeen Tahir
by Mobeen Tahir , Credit Officer , Tawuniya Insurance

The Throughput Contribution is Revenue minus variable cost, So C is the right answer.

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